Introduction

In today’s social networking era, Telegram group communication is a crucial part of daily life. Notcoin and UXLINK are standout products that utilize Telegram to quickly grow their user bases. Since launching on January 1, 2024, Notcoin has amassed over 30 million users and 6 million Telegram group members through its lightweight Tap-to-Earn mining and viral marketing. Comparatively, UXLINK has attracted numerous users through its Link-to-Earn mechanism, based on social connections and viral growth, and currently boasts 4.6 million on-chain point holders and 1.6 million NFT holders.

Since its inception, UXLINK has gained 8.2 million registered users, built nearly 100,000 WEB3 groups, and reached over 8 million users through these groups, with numbers still rising. Throughout May, UXLINK consistently topped DappRadar’s daily, weekly, and monthly social DAPP charts and held a steady top three position in the overall rankings. Zoey from MT Capital expressed, “We are highly optimistic about UXLINK’s dual business positioning. It offers extensive features and applications for individual users and robust services and support for developers. Traditional SocialFi platforms often depend on the scale of individual users, but UXLINK achieves broader coverage and more stable revenue through its dual market approach. Expanding the individual user base strengthens the entire ecosystem, while partnerships with developers monetize traffic value, fostering community growth and increasing user engagement - serving both as a user platform and as infrastructure for developers.

From MT Capital’s strategic viewpoint, we see the key to mass adoption as breaking the confines of a single market to create a multi-dimensional, multi-layered user and revenue structure. UXLINK is not just a social platform but a pivotal node in an ecosystem. By integrating functions like social interaction, trading, and development into one platform, UXLINK can effectively attract and retain users and provide a stable and scalable environment for developers. This diversified strategy enhances the platform’s resilience and lays a strong foundation for future growth and innovation.”

Going forward, UXLINK aims to develop Social-Dex, expand its functionalities, and generate more positive value. Currently, UXLINK’s monthly revenue covers its expenses, creating a healthy development and flywheel effect, with the value of UXLINK Token set to rise further. We believe that with continuous innovation and strategic planning, UXLINK will establish new standards in the SocialFi field and drive industry-wide development and transformation.

This research report will explore UXLINK’s current development and future outlook in terms of mass adoption, product and business model sustainability, user data, and user profiles.

1.Path to Mass Adoption

In the current bull market, no project has yet achieved “Mass Adoption,” making the question of how to break into mainstream use a hot topic in web3. UXLINK’s path to mass adoption includes several key strategies:

1. Utilizing Existing Platform Traffic:
   • Leveraging Telegram’s massive user base: UXLINK taps into Telegram’s large user pool to quickly and affordably gain initial users, transferring real-world social connections onto the blockchain.
   • User Acquisition and Conversion: By using incentive mechanisms, Telegram users are converted into blockchain users.
2. Link to Earn:
   • Users earn UXUY points by sharing invitation links to join UXLINK’s Telegram community. This approach leverages social networks to quickly grow the user base.
   • During the AIRDROP2049 event in April and May, UXLINK attracted over 1 million users from 190 countries and regions, with over 50 partners participating. Notably, more than 60% of participants joined through social invitations, highlighting UXLINK’s broad appeal and viral growth.
3. Engaging External Developers:
   • Developer Incentives: UXLINK uses $UXLINK to pay for protocol, data, and Dapp usage fees, attracting developers to create high-quality applications and enrich the ecosystem.
   • Providing Social Data: UXLINK offers social relationship data from the Dapp layer through APIs to developers.
4. Ecosystem Collaboration and Expansion:
   • Broad Ecosystem Partnerships: Collaborating with partners in DeFi, AI, GameFi, and other sectors to promote the distribution of UXLINK points and NFTs, expanding its influence.
   • Launching the “UXLINK Social Ecosystem Alliance”: Expanding the developer community and third-party project partnerships to boost revenue and growth.
5. User Incentives and Retention:
   • Layered Operations and Long-term Incentives: Issuing different levels of community NFTs to ensure long-term incentives for active users, with 65% of incentives reserved for the community.
   • Continuous “Mining” Opportunities: Building a strong Web3 social network and continuously allowing users to earn $UXLINK through community contributions, enhancing user engagement and activity.
6. Diverse Token Use Cases and Fair Allocation:
   • $UXLINK has clear use cases in protocol fees, transaction commissions, and airdrop/investment opportunities, creating a sustainable deflationary model.
   • Community Distribution and Incentives: Most $UXLINK tokens are allocated to community users and developers, promoting ongoing development and user participation.
7. Data-Driven Optimization:
   • Data-Driven Decisions: Using on-chain data analysis to optimize user experience and incentive mechanisms, ensuring the platform meets user needs and market trends.
   • Continuous Improvement and Innovation: Leveraging on-chain data insights to enhance existing features and introduce new ones, maintaining the platform’s competitiveness and innovation.

Similarly, Notcoin, also rooted in Telegram, uses lightweight Tap-to-Earn mining and viral marketing to smoothly bring new users into Web3 through Telegram. Since launching on January 1, 2024, Notcoin has quickly become one of the most popular channels on Telegram, with over 30 million participants and more than 6 million Telegram group members, making it a traffic favorite.

According to Dune Analytics, even without a Token Generation Event (TGE), UXLINK currently has around 4.6 million on-chain point holders and over 1.6 million NFT holders, with numbers growing rapidly. Compared to Notcoin, while UXLINK’s WEB2 traffic is still behind Notcoin, its user conversion rate is much higher. Currently, Notcoin has 1.77 million on-chain holders (22 million pre-TGE holders). UXLINK significantly outperforms Notcoin in terms of on-chain holders and has a higher off-chain to on-chain conversion and active user ratio, indicating deeper user engagement and more original users.

This demonstrates that UXLINK has a strong conversion rate from off-chain to on-chain users, with deeper interactions. UXLINK is actively collaborating with various projects and continuously working on market education. With more applications being launched, it is highly likely to become the next product to achieve mass adoption.

2.Business Model – Balancing Both Ends, Creating a Positive Flywheel Effect

UXLINK’s business model caters to both B2B and B2C segments.

For Individual Users: Individual users primarily engage in social interactions within groups, where they can discover, participate in, and trade Crypto assets. Most features are free for individual users, but a transaction fee of about 1-3% is applied to trading activities.

For Developers: Developers use UXLINK’s Dapps and RWS social protocol to develop and enhance social relationships and data. UXLINK offers various trading scenarios and products, such as Airdrop, Pre-market, and MEMECOIN, sharing the commission with developers. Developers are charged for the use of applications, protocols, and data in Tokens, with 85-90% of the revenue allocated to community users and a 10-15% infrastructure fee retained by UXLINK.

Revenue Generation: UXLINK began generating revenue in 2023. Since March 2024, it has been building the UXLINK social ecosystem to provide greater benefits to the community and developers. Currently, UXLINK’s monthly revenue (valued in Tokens) is sufficient to cover its project expenses.

3.User Data and Profiles

Since its launch in late April 2023, UXLINK has attracted 8.2 million registered users and built nearly 100,000 WEB3 groups, reaching over 8 million users through these group chats. This number is continuously increasing. In May, UXLINK consistently held the top spot in DappRadar’s daily, weekly, and monthly social DAPP charts, and maintained a top three position in the overall rankings. According to Coin98 statistics, UXLINK is currently the leader in the socialfi sector in terms of the number of active unique addresses over the past 30 days, significantly outpacing the second place.

In Operations: UXLINK uses user segmentation and targeted strategies to create detailed user profiles. Currently, on-chain interactions fall into two main categories:

1. Identity/Social Interactions: Including SBT, Group, Social Graph, learning check-ins, invitations, etc.
2. Asset/Trading Interactions: Including NFTs, airdrops, SWAP, Pre-Market, etc.

By issuing NFTs, UXLINK also assesses user quality. The criteria for minting NFTs are based on users’ contributions to the community, their on-chain interactions, and the value of assets they hold. Specifically:

1. LINK NFT holders: With 1,464,755 holders, these users are highly active on-chain and form the largest NFT holding group globally.
2. FRENS NFT holders: With 328,696 holders, these users are socially active and drive growth for Web3 projects.
3. TRUST NFT holders: With 4,374 holders, these users are KOLs and Group Leaders in the UXLINK ecosystem.
4. MOON NFT holders: With 353 holders, these users are opinion leaders and asset whales in the WEB3 ecosystem.

Conclusion

UXLINK, as an innovative SocialFi platform, has successfully attracted many users and developers with its powerful group tools and unique dual-market positioning, becoming a benchmark in the industry. By leveraging Telegram’s traffic pool to quickly acquire users, using the Link-to-Earn mechanism for user growth, and involving external developers and extensive partnerships, UXLINK has shown significant potential on the path to mass adoption.

Its business model serves both individual users and developers, creating a strong ecosystem through diversified token use cases and effective incentive mechanisms. UXLINK has not only converted a large number of web2 users but also maintained its competitiveness and user engagement through continuous data-driven optimization and innovation.

Looking ahead, UXLINK will continue to develop Social-Dex and introduce the Social Liquidity Layer for developers, generating more positive value. Currently, UXLINK’s monthly revenue is sufficient to cover its expenses, creating a sustainable development and flywheel effect, with the value of UXLINK assets expected to rise further. Through ongoing innovation and strategic planning, UXLINK aims to set new standards in the SocialFi field and drive industry growth and transformation, potentially becoming a model for future mass adoption.

References:

https://docs.uxlink.io/uxuy-labs-api/whitepaper/white-paper

https://blog.uxlink.io/airdrop2049-uxlinks-ecological-program-draws-over-1-million-users-from-190-countries-in-the-b4d1c87a2994

https://dune.com/queries/3753998

https://dune.com/queries/3755514

https://tonalytica.redoubt.online/public/dashboards/DdU5wpspip3RiIozMgVm2Tv8D9skZjSaNdMoumck?org_slug=default

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